However, Woodwell acknowledged the negative impact of the banking turmoil early this year on borrower demand and lending standards.
“Beginning in last year’s third quarter, rising and volatile interest rates, uncertainty about property values, and questions about some property fundamentals led to a fall-off in borrowing and lending across commercial property types, including multifamily,” he said. “Most capital sources saw a significant decline in lending activity in 2022, but bank activity increased by an almost equal amount. It’s unlikely that this momentum is occurring this year, given current evidence that banks have tightened underwriting standards and borrower demand has weakened.”
Read next: MBA advises FHFA against tightening rent control
The $480.1 billion multifamily loans originated in 2022 went to various types of lenders. By dollar volume, the greatest share (42% of the overall figure) went to depositories. The top five lenders by dollar volume were JP Morgan Chase & Company, Wells Fargo, Walker & Dunlop, Berkadia, and Capital One Financial Corp.
Want to keep up with the latest mortgage news? Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
Comments are closed, but trackbacks and pingbacks are open.